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THE MINISTRY OF FINANCE

THE MINISTRY OF FINANCE

CIRCULAR No. 79/1997/TT-BTC OF NOVEMBER 6, 1997 GUIDING THE IMPLEMENTATION OF DECREE No. 23-CP OF APRIL 18, 1996 OF THE GOVERNMENT DETAILING AND GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LABOR CODE REGARDING SPECIFIC PROVISIONS ON FEMALE LABORERS

Pursuant to Decree No. 23-CP of April 18, 1996 of the Government detailing and guiding the implementation of a number of articles of the Labor Code regarding specific provisions on female laborers;

Proceeding from the financial regime currently applicable to State enterprises;

The Ministry of Finance hereby provides the following guidance on the implementation of Clause 3, Article; Clauses 2, 3 and 4, Article 7 of the above Decree:

1. OBJECTS OF APPLICATION:

Subject to this Circular shall be enterprises of various economic sectors which engage in the business lines stipulated in their business licenses, abide by the provisions of the legislation on finance and accounting and meet one of the two following conditions for being considered enterprises that employ a large number of female laborers:

1. Employing between 10 and 100 female laborers on a regular basis and the number of female laborers represents 50% or more of the enterprise's total number of regular workers.

2. Employing over 100 female laborers on a regular basis and the number of female laborers represents 30% or more of the enterprise's total number of regular workers .

The female laborer referred to in this Circular is construed according to the contents defined in Point 1, Section I of Circular No. 03-LDTBXH/TT of January 13, 1997 of the Ministry of Labor, War Invalids and Social Affairs.

3. Non-business units and offices of State corporations, which do not directly engage in business operations, shall not be subject to this Circular.

II. CONTENTS OF THE FINANCIAL PREFERENCES REGIME APPLICABLE TO PRODUCTION AND BUSINESS UNITS EMPLOYING A LARGE NUMBER OF FEMALE LABORERS

1. Clause 3, Article 6, Decree No. 23-CP stipulates: "Enterprises shall be allowed to use part of their total annual investment ital to improve the working conditions for female laborers." The Ministry of Finance provides more detailed guidance as follows:

1.1. The annual investment ital of an enterprise includes all types of investment ital regardless of their sources..

1.2. Part of the above-mentioned investment ital used to improve the working conditions for female laborers shall comply with the following preferential percentages:

- The maximum spending rate shall be 10%, if the ital source mentioned in Point 1.1 is 500 million VND or more, but the spending amount shall not exceed 500 million VND.

- The maximum spending rate shall be 15%, if the ital source is below 500 million VND.

1.3. This fund shall be used for improving the working conditions for female laborers, such as:

- Installation of the anti-heat (cooling), noise-reducing or dust- absorbing system..., at workshops and factories.

- Building of make-shift tents on construction sites, farms and other open-air work places.

- Building of women's fixed bathrooms and toilets at workshops, factories or mobile ones at open-air work places.

- Building, repair and procurement of non-durable properties for nurseries and kindergartens of enterprises (if they are not under the management of the educational and training service).

1.4. The fund and properties invested with the above-mentioned ital sources shall be accounted, used and managed in accordance with current financial regulations.

2. Clauses 2, 3 and 4, Article 7 of Decree No. 23-CP are specified as follows:

2.1. Apart from the expenditures already prescribed by law, the following additional expenses incurred by enterprises as a result of employing a large number of female laborers shall be accounted into the costs of business operations:

a/ Additional expenses on job-retraining for female employees and workers if their current jobs are no longer suitable so that they can undertake other jobs according to the enterprise's development planning .

These additional expenses include: tuition fees (if any) plus the salary scale-based allowance (trainees shall be paid 100% of their salaries).

b/ Salaries and salary allowances (if any) for female teachers of nurseries and kindergartens under the enterprise's management. The number of these female teachers shall be determined according to the quota set by the education and training service.

c/ Expenses on another medical check-up in a year (apart from the prescribed number of medical check-ups), mainly the examination of occupational, chronic or gynecological diseases often suffered by female employees and workers.

d/ Expenses on allowances for female laborers after their first or second childbirth. Such allowance shall not exceed 300,000 VND/a person (for enterprises in cities, towns and townships) and not exceed 500,000 VND/a person (for enterprises in deep-lying, remote areas and islands...) to help mothers overcome financial difficulties after their childbirth.

e/ During the breastfeeding time, if, for some objective reason, a mother does not return to breastfeed her baby and keeps working for the enterprise, she shall be paid for working over time (corresponding to the breastfeeding time) according to current regulations.

2.2. Additional expenses which an enterprise is allowed to pay mentioned in Point 2.1 above shall be considered valid if they are supported by documents proving that they are actual expenditures arising in the year and affixed with the signatures of payees.

2.3. The above-mentioned additional expenses as a result of employing a large number of female laborers which enterprises are allowed to pay as mentioned in Points 2.1 and 2.2, shall be:

a/ Accounted into the production costs arising in a quarter of the fiscal year.

If an enterprise suffers a loss due to such additional expenses which an enterprise is allowed to pay, such loss shall be offset by the enterprise's before-tax profits of the subsequent year.

b/ Enterprises shall have to record promptly and fully the above-mentioned expenses in their accounting books and financial statements.

c/ The agency that manages State ital and properties at enterprises and the provincial/municipal tax agency shall have to supervise and oversee the use of ital investment sources for improving the working conditions and additional expenses as a result of the employment of a large number of female laborers in accordance with the provisions of this Circular.

III. ORGANIZATION OF IMPLEMENTATION:

This Circular takes effect from July 1, 1997. All earlier provisions which are contrary to this Circular are now annulled.

The directors and chief accountants shall take responsibility to the State and guide and coordinate with the trade unions in the enterprises, for implementing this Circular.

If an enterprise which meets all the conditions defined in Section I wishes to enjoy the financial preferences mentioned above it shall have to make an application dossier including a written certification by the provincial/municipal Department of Labor, War Invalids and Social Affairs and to register with the tax agency and the agency that manages the State ital and properties at enterprises in the locality where the enterprise registers its business.

In the course of implementation, any problem arising should be referred to the Ministry of Finance for consideration and timely settlement.

For the Minister of Finance

Vice Minister

PHAM VAN TRONG